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Premier Bank and Trust is considering giving Bridgeport Company a loan. Before doing so , they decide that further discussions with Bridgeport's accountant may be
Premier Bank and Trust is considering giving Bridgeport Company a loan. Before doing so they decide that further discussions with Bridgeport's accountant may be desirable. One area of particular concern is the inventory account, which has a yearend balance of $ Discussions with the accountant reveal the following.
Bridgeport received goods costing $ on January that were shipped FOB destination on December The shipment was a rush order that was supposed to arrive December This purchase was included in the ending inventory of $
Bridgeport sold goods costing $ to Cusa Company, FOB shipping point, on December for $ The goods are not expected to arrive at Cusa until January The goods were not included in the physical inventory because they were not in the warehouse.
The physical count of the inventory did not include goods costing $ that were shipped to Bridgeport FOB destination on December and were still in transit at yearend.
Bridgeport received goods costing $ on January The goods were shipped FOB shipping point on December by Noble The goods were not included in the physical count.
Bridgeport sold, for $ goods costing $ to Limerick Co FOB destination, on December The goods were received at Limerick on January They were not included in Bridgeport's physical inventory.
a
Your answer is incorrect.
Determine the correct inventory amount on December
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